UNITED STATES DEPARTMENT OF TRANSPORTATION FEDERAL AVIATION ADMINISTRATION WASHINGTON, DC

PENSACOLA AVIATION CENTER, LLC COMPLAINANT 

## v.

PENSACOLA INTERNATIONAL AIRPORT CITY OF PENSACOLA, FL RESPONDENT FAA Docket No. 16-12-12

REOUEST FORADDITIONAL INFORMATION

Pursuantto 14 CFR § 16.29(b)(I), the Federal Aviation Administration (FAA) has determined thatthe pleadings inthis matter need to be supplemented by limited, additional information. The Respondent, Pensacola International Airport (Airport), is requested to respondto the following informationrequest within 20 days from the date ofissuance ofthis request. I. According to the record ofthis proceeding, the Respondent entered into Lease and OperatingAgreement-AmendmentNo. 2 withAerose LLC d/b/a Innisfree Jet Center (Innisfree) on September 24,2012 granting Innisfree authorization to provide aeronautical services as a full-service fixed base operator (FBO) at the Airport. The authorizations and privileges granted by leaseAmendmentNo. 2 are contingent upon Innisfree constructing and leasing certain facilities in accordance withthe Respondent's minimum leased space requirements for full-service FBO operations, as outlined in its 2012 revised Airport Minimum Standards. However, it is unclear from the record whether Innisfree has infact constructed required facilities in accordance with the terms ofleaseAmendmentNo. 2. It is also unclear what primary and secondary aeronautical services are provided by Innisfree (or qualified subcontractors) as part ofits full-service FBO operation. Accordingly, the Respondent is requested to address the following: LeasedPremises Number 2

a. Leased Premises Number 2 consists ofapproximately 9,000 square feet ofland for the construction ofa 9,000 square foot aircraft hangar. AmendmentNo. 2 requires Innisfree to construct the hangar facility and have a date ofbeneficial occupancy2
within 24 months ofthe date ofamended lease. Itis not clear from the record whether, or not, the hangarhas been constructed. Please provide the current construction status ofthe 9,000 square foot hangar, including an affirmation that the hangar has been constructed, or in the converse, an affirmation thatthe hangar has not been constructed, as applicable. b. LeaseAmendmentNo. 2 requires Innisfree to beginpaying ground rent for Leased Premises Number 2 (hangar site) beginning onthe date ofthe amended lease. Please provide documentary evidence to substantiate that Innisfree has remitted the required lease payments for Leased Premises Number 2.

c. The Respondent states in leaseAmendmentNo. 2 that it is notrequiring Innisfree to have "

...three to one leased landto buildingratio outof a spirit of competitive fairness. " The Respondent provides that such a ratio is typically consistent with "best practices" within the airport industry. Itis unclear what purpose this provision ofthe lease serves. Please provide an explanation ofthe referenced "competitive fairness" to be achieved throughthe inclusion ofthis lease provision, including an explanation ofthe unfair treatment Innisfree would be subjected to inthe absence ofthe provision. Also, clarify whether, ornot, the Respondent has required this ratio in other similar aeronautical leases ofairport property, including the Complainant's aeronautical leasehold. Leased Premises Number 3

a. Leased Premises Number 3 includes "Preferential Use Apron 2," which encompasses approximately 78,000 square feet and is limited to general aviation and/or military rotary aircraft operations only (unless Innisfree and the Respondent agree otherwise). Itis not clear where on the Airport "Preferential Use Apron 2" is located relative to the Innisfree FBO operation. Itis also unclear ifthe parties have agreed to allow fixed wing aircraft to use the apron. Please provide an illustration ofthe location of"Preferential Use Apron 2" onthe Airport, including an illustration ofthe actual dimensions ofthe Innisfree leasehold thereon, and clarify the current limitations to Innisfree's use ofthe apron for FBO operations, ifany. b. Please clarify the maximum square footage oframp space in the Innisfree FBO leasehold that is capable of, and available for, accommodating FAA Design Group II fixed wing aircraft.

c. LeaseAmendmentNo.2 provides a $150,000 rental credit in order "

...toprovide the same economic basis for hangar development as wasprovidedto the existingFBO at the Airport. " The amended lease allows Innisfree to use the rental creditto reduce ground rental rates to an effective $0.06 per square foot for Leased PremisesNumber 3, which includes "Preferential Use Apron 1" and "Preferential Use Apron 2," until the credit is exhausted over a 5 year period. Please provide clarification as to whether, or not, the ground rental credits are presently in effect. Provide documentary evidence to substantiate that the rental credit is reflected inInnisfree's current lease/rental structure for Leased Premises Number 3, as applicable.3

Fuel Storage Facilities

a. LeaseAmendmentNo. 2 provides that Innisfree will lease 4,650 square feet in the Airport fuel farm (including 850 square feet for fuel storage expansion) and will make its best efforts to complete the fuel farm expansion within one year ofthe date ofthe amended lease. Itis unclear ifInnisfree has completed the fuel farm expansion and has commissioned the required minimumfuel storage capacity requirements for AvGas and Jet A fuels. Please clarify the current status oflnnisfree's required fuel farm expansion and include Innisfree's current total fuel storage capacity in the fuel farm for each ofthe required fuels (AvGas and Jet A). List ofExhibits

a. Provide a full and legible copy ofall updated exhibits corresponding to Exhibit AExclusive Use Leased Areas, Exhibit B

- Preferential Use Lease Areas, and Exhibit D - Rental Credit Application, as described inthe List ofExhibits in leaseAmendmentNo. 2. Provide any other exhibits, illustrations, descriptions, etc. not already provided for in the List ofExhibits that will assist in the identification ofthe entire Innisfree leasehold. Primary and Secondary Aeronautical Services

a. Provide documentary evidence to demonstrate that Innisfree is providing, or subcontracting, required airframe and powerplant maintenance services. Documentary evidence should identifY the maintenance service provider(s) and demonstrate that required maintenance services are available to aeronautical users during the days and times specifiedby Section 5.7 ofthe 2012 revised Minimum Standards. Provide evidence that the maintenance provider has leased from the Respondent orInnisfree the minimum required ramp, hangar, and office space identified in Section 7.1.2 ofthe 2012 revised Minimum Standards. b. Provide documentary evidence identifying which secondary FBO services Innisfree provides (or subcontracts) to aeronautical users in accordance with Sections 5.7 and 5.8 of the 2012 revised Minimum Standards. Documentary evidence should identifY the service provider(s) and demonstrate that the required services are available to aeronautical users during the days and times specified by Section 5.8 ofthe 2012 revised Minimum Standards. Provide evidence thatthe service provider(s) have leased from the Respondent or Innisfree the minimumrequired ramp, hangar, and office space identified in Section 7.1.2 ofthe 2012 revised Minimum Standards.4

Theparties to the Complaint should not consider that this request for additional information and related questions necessarilyrepresent all ofthe FAA's concerns regardingthe issues raised in the record to the Complaint. Furthermore, the parties should not assume that the sponsor's compliance status would tum, necessarily, on any one answer to a question. The Director will weigh the full breadth, substance, and relevance ofsupporting documentation comprising the Record in issuing a Determination.

· irector ofOffice ofAirport Compliance and Management Analysis DateCERTIFICATE OF SERVICE

I HEREBY CERTIFY that on March/2:; , 2015, I served via electronic mail a true copy of the FAA's Request for Additional Information, addressed to:

Counsel for Complainant: Leonard D. Kirsch, Esq. McBreen & Kopko 500 NorthBroadway Jericho, New York 11753 Tel: (516) 364-1095 Fax: (516) 364-0612

Counsel for Respondent: Eric Smith, Esq. Schnader Harrison Segal & Lewis, LLP Fifth Avenue Place 120 FifthAvenue, Suite 2700 Pittsburgh, PA 15222-3001 Tel: (412) 577-5223 Fax: (412) 765-3858
Copy to: FAAPart 16 Airport Proceedings Docket FAA Airport Compliance and Management Analysis, (ACO-l00)

Chiudia Roberts Office ofAirport Compliance and

Management Analysis